Destination Maternity announces credit ratings upgrade by S&P

15 Feb '10

1 min read

Destination Maternity Corporation, the world's leading maternity apparel retailer, announced that Standard & Poor's Ratings Services ("S&P") raised both its corporate credit rating on Destination Maternity to 'B' from 'B-', and its issue level rating on the Company's Term Loan to 'BB-' from 'B'. Also, S&P attached an outlook of "stable" to its credit rating of the Company.

S&P noted in its research update announcing the ratings upgrade, "The upgrade reflects the ongoing margin improvement, which has contributed to a substantial increase in EBITDA year over year. This EBITDA growth coupled with moderate amounts of debt repayment have resulted in sufficient improvement in the company's credit protection metrics to warrant an upgrade."

Ed Krell, Chief Executive Officer of Destination Maternity, noted, "We are very pleased that Standard & Poor's has raised our credit ratings in recognition of our strong improvement in operating performance and cash flow and the resulting improvement in our financial and credit statistics. We believe this upgrade is a positive development as we continue our progress in improving the profitability and financial position of our Company."

Destination Maternity Corporation

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